Cryptocurrency Contract Introduction: A Must-Read Pitfall Guide for Beginners

Want to step into contract trading? Let me splash some cold water on you: this is one of the highest-risk activities in the crypto world. Beginners should not rush to get started; first, digest these basic knowledge and painful lessons. Staying safe is more important than making money—what follows is purely for educational purposes and is by no means investment advice.

1. Understand the rules before taking action

• Don't confuse contract types: The “perpetual contract” that beginners often encounter has no expiration date, is simple to operate but carries ongoing risks; “delivery contracts” have fixed settlement dates, and the mechanism is more complex, so it’s advisable to start with the former.

• Leverage is a "double-edged sword": It can amplify profits but can also double losses! A small fluctuation could leave you with nothing. Beginners must start with the lowest leverage and should never increase it before fully understanding the risks.

• Stop-loss is a lifeline: Always set a stop-loss! This is the only way to control individual losses; set a range based on your capacity to bear loss and strictly enforce it—do not harbor any illusions.

• Choose big platforms over small ones: Prioritize platforms that have a long history, good reputation, and relatively sound regulation. Carefully compare transaction fees and funding rates. Small platforms carry a very high risk of running away; do not gamble your principal.

2. Core rules for survival

• Never “hold onto a position”: When it hits the stop-loss point, decisively exit the position; protecting your capital is always the top priority—do not fantasize that the market will turn around to save you.

• Stay away from high leverage temptation: High leverage is the fastest way to liquidation; data shows that accounts that have used high leverage almost always end up liquidated.

• Never go “all in”: No matter how promising an opportunity seems, always leave at least 30% of your funds as a buffer. The market can turn against you faster than you can turn a page; you need to leave yourself an escape route.

3. Red lines that can lead to disaster

• Avoid skyrocketing “meme coins”: Coins that surge wildly in the short term are often traps; entering could make you a “bag holder.”

• Eliminate trading without stop-loss: This is extremely irresponsible towards your funds; it’s like jumping into a fire pit with your eyes closed.

Final reminder: The cryptocurrency market is highly volatile and can wipe out your principal or even lead to debt. Before entering the market, be sure to weigh your financial situation and risk tolerance; do not follow the crowd blindly. Trading involves risks, think carefully before acting! #杰克逊霍尔会议